A Change Of Behaviour
I think of the market as a system: a hierarchy of interconnected behaviours and forces that change over time. Reinforcing loops matter enormously for price discovery. To read the market is to understand how far a loop can exert influence before it becomes restricted, either by itself or by a balancing loop. This is the backbone of my analysis, both on the chart and in the internal somatic work I do.
Stripping back the jargon, the market is a stock of money. It has an inflow tap and an outflow tap. Within the stock sit competing pools that either grow the money (reinforcing loops) or drain it (balancing feedback loops).
(To go deeper here, study Thinking in Systems by Donella Meadows.)
The stock of money can grow in two ways:
Inflows run faster and larger than outflows.
Outflows run slower and smaller than inflows.
There are laws to this. A stock cannot grow infinitely before it rebalances.
The real complexity in financial markets is not the inflows or the outflows effecting the level of the stock. It is reading the behaviour of the interconnected loops acting on the stock. That takes experience, truth-seeking, time, honesty, unrelenting agility, and a mechanism for making decisions in an inherently unpredictable environment. This is what your subscription is paying for, alongside community access.
As of late, the inflows to the stock of money have been very
